Common Elder Law Terms Defined
The legal terms used in elder law situations can be confusing and daunting. It is impossible to list and define all the elder law terms in this article, but here are some of the more common jargon you might encounter. A Maryland elder law attorney can answer your questions about these and other elder law terms.
The estate – Everything a person owns when he dies. The estate can include items, like a house, car, bank accounts, and personal goods. Other things, like copyrights, patents, royalties, and licenses, can be a part of the estate. If the decedent died because of someone else’s negligence or intentional act, the estate might have a right to file a lawsuit against the at-fault party.
Intestate – When a person dies without leaving a valid will or trust agreement. The probate court will have to decide what happens to your estate. It can be expensive for an intestate estate to go through probate court, so there will be less money for your heirs. The court will appoint an administrator to handle your estate as it goes through probate court.
Will – A legal document that controls how the assets of the estate get distributed to heirs, friends, charities, and others when the person who wrote the will dies.
Codicil – A written document that changes some terms in a will.
Living Trust – These documents can be revocable or irrevocable. As the names indicate, you can modify or rip up a revocable trust, but you cannot change an irrevocable trust. The trust can keep your property out of probate court. The trust can only cover property that gets retitled into the name of the trust. There are many different kinds of trusts.
Power of Attorney - A document that gives someone the right to take actions, like pay the bills or manage investments, of another person under defined circumstances. A power of attorney (POA) can be limited to specific actions, like signing the documents for someone at a real estate closing, or general, giving broad authority.
A POA only works while the person who created the document is alive. Unless the POA is “durable,” it expires when the person who made it becomes incapacitated. A POA can be for financial issues or healthcare decisions.
Healthcare Proxy – This paper designates someone to act on your behalf when you are incapacitated. The person you appoint to make decisions for you has no authority to do things against your will. Another name for this document is a Medical Power of Attorney.
Personal Representative/Executor – The person you name in your will to administer your estate after you die.
Payable on Death/Transfer on Death – You can designate someone to receive an account, like a checking or savings account at a bank or a brokerage account, automatically when you die.
Beneficiary - People and organizations who receive assets or money through your life insurance policy, retirement account, annuity, will, trust, or another contract.
Special Needs Trust – A living trust that can provide for a disabled loved one without causing them to lose their eligibility for government assistance programs like Medicaid. After the beneficiary (person with special needs) dies, the government will get reimbursed from the trust assets for the care provided to the person.
These are but a few examples of the many legal terms of elder law. Contact Maryland elder law attorney, Steve Thienel to help prepare your estate documents to protect you and your loved ones.
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